KIEV, December 20 (RIA Novosti) – The Ukrainian government on Thursday adopted a resolution to issue $3 billion of eurobonds at 5 percent annual interest.
Russian state bank VTB Capital will be the organizer of the eurobond issue, which was approved by Ukraine’s parliament and reflected in the country’s 2013 budget.
Russia announced earlier this week that it could draw on its national wealth fund to buy $3 billion in Ukrainian eurobonds by the end of this week, making a swift start to its plans to provide $15 billion worth of credit to its cash-strapped neighbor.
Russian President Vladimir Putin also announced at a meeting with his Ukrainian counterpart Viktor Yanukovych in Moscow on Tuesday that Russia would sell gas to Ukraine’s Naftogaz energy company for $268.50 per 1,000 cubic meters. That is well below the current level of more than $400.
